Tax revolution in Slovakia: get ready for the new financial transaction tax

From next year, a tax novelty will come into force in Slovakia, which will affect financial transactions of entrepreneurs and companies. What does the new law bring and how will it affect your finances? In our overview, you will learn everything about this new obligation, from the rates to the specifics of the tax period.

Financial transaction tax in Slovakia - an overview of the new law effective from 1 January 2025

According to § 4 of the FTT, the tax will apply to:

• financial transactions,
• use of payment cards for business purposes,
• recharged costs related to financial transactions.

On the other hand, payments made for the purpose of paying taxes and levies or securities transactions related to retirement savings, for example, will not be taxed.

Entrepreneurs who do not have a business account must open one by 31 March 2025.

Tax rates by type of transaction

The taxable amount is the amount withheld when the financial transaction takes place. The amount of tax depends on the type of service:

• 0.4% on account transfers, with a maximum tax amount of EUR 40 per transaction;
• 0.8% on cash withdrawals;
• EUR 2 for the use of a credit card for business purposes;
• 0.4% on recharges from a person who made payments on behalf of the taxpayer in the course of business in Slovakia.

Tax period and notification

Tax is rounded to euro cents - amounts up to EUR 0.005 downwards, from EUR 0.005 inclusive upwards. The tax period is usually the calendar month, for credit cards the calendar year. The first tax period is set for April 2025, although the law has been in force since January. The tax is payable by the end of the month following the end of the tax year, with the payer usually being the payment service provider. In some specific cases, in particular when the service provider does not have a registered office or establishment in Slovakia, the tax will be paid directly by the taxpayer. Instead of a tax return, a Notice of Tax Amount will be filed electronically.

This summary provides only a basic orientation on the new tax and its application. For detailed information and advice on the specific implications of the newly introduced tax, please do not hesitate to contact the PKF APOGEO Tax team.